Investment Basics

What are some of my options for investing

A look at different asset classes

Different investments suit different people at different stages in their lives, so when making your investment decisions ask yourself;

How long am I planning to invest for?

How do I decide the mix of equities, bonds and cash?

How often should I review my portfolio?

There are four main types of assets you can invest in – equities, bonds, cash and property. We’ll show you the advantages and risks associated with each option, so you can work out the best ones for you. Most investors choose a combination of these investment types to make up their portfolio.

These asset classes perform very differently. While our research shows that equities tend to perform better than cash, bonds and property over the long term, each can be appropriate at a different stage in your life. These different investments carry different risks but also different levels of potential returns, as the table below shows:

Cash Bonda Property Equities
 Risk Low  Low-Med  Med-High  High
 Potential return  Low Low-Med  Med-High  High
Suggested minimum investment duration Short term 3 years 5 years 5-10 years